Exhibit 99.1
FOR IMMEDIATE RELEASE
| CONTACT: | Kevin T. Thompson | |
| Executive Vice President | ||
| Chief Financial Officer | ||
| (419) 254-6068 |
Sky Financial Group Reports First Quarter Results
April 21, 2004 (Bowling Green, Ohio, NASDAQ: SKYF) Sky Financial Group, Inc. today reported first quarter net income of $58.7 million, up 62.7% versus $36.1 million for the first quarter last year. First quarter earnings per diluted share were $.62, up 51.3% from $.41 per diluted share for the first quarter last year. During the first quarter, Sky completed the sale of its dental finance unit, Sky Financial Solutions (SFS), and the results for Sky have been restated for all historical periods to reflect SFS as “discontinued operations.” In the first quarter, including the gain on sale of SFS, income from discontinued operations contributed $18.7 million or $.20 per diluted share.
Income from continuing operations for the first quarter was $40.0 million, up 11.5% from $35.8 million in the first quarter last year. Diluted earnings per share from continuing operations were $.42, up 2.4% from $.41 in the same period last year. On a continuing operations basis, annualized return on assets and return on equity for the first quarter were 1.25% and 15.54%, respectively, compared with 1.32% and 17.25%, respectively, for the same period last year.
“We are very pleased with our financial performance in the first quarter,” stated Marty E. Adams, chairman and chief executive officer. “The sale of Sky Financial Solutions was a landmark event for Sky. Our disciplined approach to our strategic priorities continues to produce earnings growth, and with our balance sheet now strengthened by the sale of SFS, we are completely focused on the growth of our regional financial services structure.”
“The company is particularly looking forward to adding the employees and clients of Second Bancorp to Sky by completing our merger on July 1, 2004,” continued Adams. “This merger provides us with another great opportunity to leverage our capabilities for growth and profitability.”
Core operating earnings, which reflect income from continuing operations adjusted to exclude merger-related expenses and significant transactions not representative of ongoing operations, were $40.2 million for the first quarter, up 12.1% versus $35.8 million for the first quarter last year. Core operating earnings per diluted share for the first quarter were $.43, up 4.9% from $.41 for the first quarter last year. For the first quarter, on a core operating earnings basis, annualized return on assets and return on equity were 1.25% and 15.63%, respectively, compared with 1.32% and 17.25%, respectively for the same period last year.
Cash operating earnings, which reflect core operating earnings further adjusted to exclude the effects of amortization of intangibles, were $41.4 million or $.44 per diluted share in the first quarter, up from $36.8 million and $.42 respectively, for the first quarter last year. On a cash-operating basis, the annualized return on average tangible equity was 20.63% for the first quarter compared with 21.19% in the same period last year.
First Quarter Results
Net interest income for the first quarter was $101.8 million, up 12.7% from $90.4 million in the first quarter last year. The net interest margin for the first quarter was 3.71%, down one basis point from last quarter and a decrease of 11 basis points from the first quarter a year ago. The lower net interest margin from the prior year primarily reflects the incremental effect from acquisitions and the impact of the extended low rate environment.
Average earning assets increased 15.1% over the first quarter last year from a combination of organic growth and acquisitions. Average loans for the quarter increased 17.9% from last year with organic growth contributing 2.5% in addition to the acquisitions. Average deposits, excluding time deposits, grew 22.1% from the first quarter last year, which included organic growth of 7.6% in addition to the acquisitions. Including time deposits, average total deposits for the first quarter were up 11.6% from the first quarter last year, but declined 3.2% when the acquisitions were excluded.
Non-interest revenues were $43.4 million for the first quarter, up 9.1% from $39.8 million in the first quarter last year more than offsetting a reduction in mortgage banking revenues. Excluding mortgage banking and net securities transactions, non-interest revenues were up 21.7% with strong results compared to the same quarter last year. Brokerage and insurance commissions were up 35.1%, trust services income was up 22.9% and service charges on deposits increased 12.1%. For the quarter, in a less favorable rate environment, mortgage originations declined and mortgage banking revenues were down $3.9 million, or 41.8% from the year-ago quarter. Securities transactions included net gains of $1.5 million in the first quarter this year versus $0.5 million in the first quarter last year.
Non-interest expenses for the first quarter were $78.5 million, which included $0.3 million of restructuring expenses. Excluding merger, integration and restructuring expenses, non-interest expenses were $78.2 million compared to $68.6 million in the first quarter last year. Expenses have increased over the prior year’s first quarter mainly due to the acquisitions of Metropolitan Financial Corp., GLB Bancorp and two insurance agencies over the last year. The efficiency ratio, on an operating basis excluding the merger related expenses, was 53.51% for the quarter, compared to 52.39% for the same quarter last year.
Credit Quality
The provision for credit losses for the first quarter was $6.7 million, decreasing from $7.5 million in the same quarter last year. The lower provision compared to the first quarter last year was due to lower net charge-offs and less growth in the loan portfolio. Net credit losses to average loans
for the quarter were .30% down from .40% for the first quarter last year. At March 31, 2004, non-performing loans to total loans was 1.06% versus .86% a year ago and the allowance for credit losses to non-performing loans was 138% versus 168% last year. Non-performing loans for the first quarter continue to reflect the non-accrual status of loans with payments guaranteed by surety bonds or insurance policies issued by three insurance companies, which remain in litigation.
Sale of Sky Financial Solutions
In the first quarter, Sky completed its sale of Sky Financial Solutions (SFS), its dental finance business. As a result of the sale, Sky restated its results for all historical periods to reflect the results for SFS as discontinued operations. Including the gain on the sale of SFS, income from discontinued operations for the first quarter was $18.7 million, or $.20 per diluted share. This compares with income from discontinued operations of $1.9 million, or $.02 per diluted share in the fourth quarter last year and $0.2 million, less than one cent per diluted share in the first quarter last year.
Continued Expansion
On April 1, 2004, Sky completed the acquisition and merger of EOB, Inc. into Sky Insurance. EOB is an insurance agency based in Canton, Ohio that specializes in the sale and service of group benefit products.
On January 8, 2004, Sky announced a definitive agreement to acquire Second Bancorp, Incorporated, headquartered in Warren, Ohio, and its wholly-owned subsidiary Second National Bank. With $2.1 billion in assets, Second operates 33 full-service banking centers and six loan production offices in a nine-county area of northeastern Ohio. The merger is expected to close on July 1, 2004, and upon completion, the combined companies will have approximately $14.2 billion in total assets and $10.0 billion in total deposits.
Outlook For 2004
Commenting on 2004, Kevin Thompson, chief financial officer stated, “With the completion of our sale of Sky Financial Solutions, and the contribution to earnings from discontinued operations of $.20 per diluted share, and including our pending acquisition of Second Bancorp, which anticipates merger-related charges of approximately $.04 per diluted share, we currently project 2004 diluted earnings per share, on a core operating basis, of $1.80 to $1.86, and on a net income, or GAAP basis, of $1.96 to $2.02 per diluted share.”
Conference Call
Today, April 21, 2004 at 3:00 p.m., Adams and Thompson will host a conference call to provide an overview of first quarter performance and a business outlook. Participants are encouraged to call in beginning at 2:45 p.m. by dialing 1-800-289-0496 (confirmation code: 655048). A simultaneous webcast of the conference call also will be available and can be accessed via the Investor Relations section of the Sky website atwww.skyfi.com. A replay of the call will be available beginning 7:00 p.m. on April 21, 2004 by calling 1-888-203-1112 (confirmation code: 655048). The event will also be archived on the Sky website indefinitely.
Non-GAAP Financial Measures
In addition to results presented in accordance with GAAP, this press release contains certain non-GAAP financial measures. Sky believes that providing certain non-GAAP financial measures provides investors with information useful in understanding Sky’s financial performance, its performance trends and financial position. Specifically, Sky provides measures based on “core operating earnings,” which excludes discontinued operations and merger-related expenses, as well as significant gains, losses or expenses that are not reflective of on-going operations or not expected to recur. In addition, Sky provides measures based on “cash operating earnings,” which further adjusts core operating earnings to exclude the effect of amortization of intangibles. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results. A reconciliation of these non-GAAP measures to the most comparable GAAP equivalent is included in the attached financial tables.
Forward-looking Statement
The information in this press release contains forward-looking statements including certain projections, plans and forecasts of expected future performance that are not historical facts and that are subject to a number of risks and uncertainties. Actual results and performance could differ materially from those contemplated or implied by these forward-looking statements. For a summary of important factors that could affect Sky’s forward-looking statements, please refer to Sky’s filings with the Securities and Exchange Commission (SEC) available at the SEC’s Internet site (http://www.sec.gov). Sky undertakes no obligation to update or revise these statements following the date of this release.
Shareholders are urged to read the joint proxy statement/prospectus regarding the proposed transaction filed by Sky Financial Group, Inc. and Second Bancorp Incorporated, because it contains important information. Shareholders may obtain a free copy of the joint proxy statement/prospectus, as well as other filings containing information about Sky and Second Bancorp, without charge, at the SEC’s Internet site (http://www.sec.gov). Copies of the joint proxy statement/prospectus and the filings with the SEC that will be incorporated by reference in the joint proxy statement/prospectus also can be obtained, without charge, by directing a request to Sky Financial Group, Inc., 221 South Church Street, Bowling Green, Ohio 43402, Attention: Shareholder Relations (800-576-5007), or to Second Bancorp Incorporated, 108 Main Avenue, S.W., Warren, Ohio 44481, Attention: Executive Vice President and Secretary.
About Sky Financial Group, Inc.
Sky Financial Group is a $12.1 billion diversified financial holding company with its headquarters located in Bowling Green, Ohio. Sky’s asset size places it among the 50 largest publicly-held bank holding companies in the nation. Sky operates over 260 financial centers and over 280 ATMs
serving communities in Ohio, Pennsylvania, Michigan, Indiana and West Virginia. Sky’s financial service affiliates include: Sky Bank, commercial and retail banking; Sky Trust, an asset management organization; Sky Insurance and Meyer & Eckenrode Insurance Group, retail and commercial insurance agency services; and Sky Access, Internet services. Sky is located on the web atwww.skyfi.com.
-end-
- press release 1st qtr 2004 -
SKY FINANCIAL GROUP, INC.
STATEMENTS OF INCOME (Unaudited)
| Three Months Ended March 31, | Percent Change | ||||||||
(Dollars in thousands,except per share data) | 2004 | 2003 | |||||||
Interest income | $ | 149,021 | $ | 141,720 | 5.2 | % | |||
Interest expense | 47,218 | 51,350 | (8.0 | ) | |||||
Net interest income | 101,803 | 90,370 | 12.7 | ||||||
Provision for credit losses | 6,665 | 7,500 | (11.1 | ) | |||||
Net interest income after provision for credit losses | 95,138 | 82,870 | 14.8 | ||||||
Non-interest income | |||||||||
Trust services income | 4,105 | 3,339 | 22.9 | ||||||
Service charges and fees on deposit accounts | 9,642 | 8,604 | 12.1 | ||||||
Mortgage banking income | 5,445 | 9,358 | (41.8 | ) | |||||
Brokerage and insurance commissions | 14,308 | 10,591 | 35.1 | ||||||
Net securities gains | 1,528 | 478 | (219.7 | ) | |||||
Other income | 8,381 | 7,416 | 13.0 | ||||||
Total non-interest income | 43,409 | 39,786 | 9.1 | ||||||
Non-interest expenses | |||||||||
Salaries and employee benefits | 44,198 | 38,390 | 15.1 | ||||||
Occupancy and equipment expense | 12,874 | 11,836 | 8.8 | ||||||
Merger, integration and restructuring expense | 346 | — | 100.0 | ||||||
Other operating expenses | 21,085 | 18,344 | 14.9 | ||||||
Total non-interest expense | 78,503 | 68,570 | 14.5 | ||||||
Income from continuing operations before income taxes | 60,044 | 54,086 | 11.0 | ||||||
Income taxes from continuing operations | 20,092 | 18,252 | 10.1 | ||||||
Income from continuing operations | 39,952 | 35,834 | 11.5 | ||||||
Income from discontinued operations, net of tax | 18,725 | 236 | 7,834.3 | ||||||
Net income | $ | 58,677 | $ | 36,070 | 62.7 | ||||
Page 1
- press release 1st qtr 2004 -
Three Months Ended March 31, | Percent Change | |||||||||
(Dollars in thousands, except per share data) | 2004 | 2003 | ||||||||
SHARE DATA: | ||||||||||
Earnings per share from continuing operations | ||||||||||
Basic earnings per share | $ | 0.43 | $ | 0.41 | 4.4 | |||||
Diluted earnings per share | 0.42 | 0.41 | 3.7 | |||||||
Earnings per share from discontinued operations | ||||||||||
Basic earnings per share | 0.20 | 0.00 | — | |||||||
Diluted earnings per share | 0.20 | 0.00 | — | |||||||
Earnings per share | ||||||||||
Basic earnings per share | 0.63 | 0.41 | 52.4 | |||||||
Diluted earnings per share | 0.62 | 0.41 | 51.3 | |||||||
Cash dividend declared per common share | 0.21 | 0.20 | — | |||||||
Average shares outstanding | ||||||||||
Basic | 92,957,000 | 87,079,000 | — | |||||||
Diluted | 94,226,000 | 87,619,000 | — | |||||||
PERFORMANCE RATIOS: | ||||||||||
Actual | ||||||||||
Return on average equity | 22.83 | % | 17.37 | % | — | |||||
Return on average assets | 1.83 | 1.33 | — | |||||||
Continuing Operations | ||||||||||
Return on average equity | 15.54 | 17.25 | — | |||||||
Return on average assets | 1.34 | 1.40 | — | |||||||
Efficiency ratio | 53.75 | 52.39 | — | |||||||
Net interest margin (FTE) | 3.69 | 3.80 | — | |||||||
Page 2
- press release 1st qtr 2004 -
SKY FINANCIAL GROUP, INC.
ACTUAL BALANCE SHEETS (Unaudited)
(Dollars in thousands)
| March 31, | Percent Change | ||||||||||
| 2004 | 2003 | ||||||||||
Cash and due from banks | $ | 200,783 | $ | 231,815 | (13.4 | )% | |||||
Interest-earning deposits with banks | 29,051 | 27,951 | 3.9 | ||||||||
Federal funds sold | — | — | — | ||||||||
Loans held for sale | 57,650 | 123,571 | (53.3 | ) | |||||||
Securities available for sale | 2,613,816 | 2,464,445 | 6.1 | ||||||||
Total loans | 8,555,651 | 7,383,760 | 15.9 | ||||||||
Allowance for credit losses | (125,043 | ) | (106,923 | ) | 16.9 | ||||||
Net loans | 8,430,608 | 7,276,837 | 15.9 | ||||||||
Premises and equipment | 152,621 | 130,022 | 17.4 | ||||||||
Assets of discontinued operations | — | 686,691 | |||||||||
Other assets | 608,862 | 446,369 | 36.4 | ||||||||
Total Assets | $ | 12,093,391 | $ | 11,387,701 | 6.2 | ||||||
Total interest-earning assets | $ | 11,256,168 | $ | 9,999,727 | 12.6 | ||||||
Non-interest-bearing deposits | $ | 1,229,981 | $ | 1,005,221 | 22.4 | ||||||
Interest-bearing deposits | 7,541,365 | 6,966,328 | 8.3 | ||||||||
Total deposits | 8,771,346 | 7,971,549 | 10.0 | ||||||||
Repos and federal funds purchased | 931,792 | 975,832 | (4.5 | ) | |||||||
Debt and FHLB advances | 1,156,419 | 824,831 | 40.2 | ||||||||
Liabilities of discontinued operations | 646,651 | ||||||||||
Other liabilities | 167,677 | 126,536 | 32.5 | ||||||||
Shareholders’ equity | 1,066,157 | 842,302 | 26.6 | ||||||||
Total Liabilities and Shareholders’ Equity | $ | 12,093,391 | $ | 11,387,701 | 6.2 | ||||||
Page 3
- press release 1st qtr 2004 -
SKY FINANCIAL GROUP, INC.
FIVE QUARTERS STATEMENTS OF INCOME (unaudited)
(Dollars in thousands)
| 2004 | 2003 | |||||||||||||||
| 1st qtr | 4th qtr | 3rd qtr | 2nd qtr | 1st qtr | ||||||||||||
Fully taxable equivalent interest income | $ | 149,872 | $ | 151,054 | $ | 152,635 | $ | 151,054 | $ | 142,438 | ||||||
Interest income | $ | 149,021 | $ | 150,407 | $ | 151,707 | $ | 150,229 | $ | 141,720 | ||||||
Interest expense | 47,218 | 47,358 | 50,904 | 53,208 | 51,350 | |||||||||||
Net interest income | 101,803 | 103,049 | 100,803 | 97,021 | 90,370 | |||||||||||
Provision for credit losses | 6,665 | 9,975 | 8,325 | 8,325 | 7,500 | |||||||||||
Net interest income after provision for credit losses | 95,138 | 93,074 | 92,478 | 88,696 | 82,870 | |||||||||||
Non-interest income | ||||||||||||||||
Trust services income | 4,105 | 3,773 | 3,585 | 3,652 | 3,339 | |||||||||||
Service charges and fees on deposit accounts | 9,642 | 10,182 | 9,932 | 9,489 | 8,604 | |||||||||||
Mortgage banking income | 5,445 | 5,231 | 19,359 | 13,884 | 9,358 | |||||||||||
Brokerage and insurance commissions | 14,308 | 11,233 | 10,047 | 10,815 | 10,591 | |||||||||||
Net securities gains | 1,528 | 2,345 | (2,034 | ) | 83 | 478 | ||||||||||
Other income | 8,381 | 9,285 | 9,090 | 9,160 | 7,416 | |||||||||||
Total non-interest income | 43,409 | 42,049 | 49,979 | 47,083 | 39,786 | |||||||||||
Non-interest expenses | ||||||||||||||||
Salaries and employee benefits | 44,198 | 39,326 | 45,261 | 41,083 | 38,390 | |||||||||||
Occupancy and equipment expense | 12,874 | 13,312 | 12,987 | 11,890 | 11,836 | |||||||||||
Merger, integration and restructuring expense | 346 | 1,091 | — | 3,486 | — | |||||||||||
Other operating expenses | 21,085 | 22,913 | 23,604 | 23,662 | 18,344 | |||||||||||
Total non-interest expense | 78,503 | 76,642 | 81,852 | 80,121 | 68,570 | |||||||||||
Income from continuing operations before income taxes | 60,044 | 58,481 | 60,605 | 55,658 | 54,086 | |||||||||||
Income taxes from continuing operations | 20,092 | 18,896 | 20,166 | 18,836 | 18,252 | |||||||||||
Income from continuing operations | 39,952 | 39,585 | 40,439 | 36,822 | 35,834 | |||||||||||
Income from discontinued operations, net of tax | 18,725 | 1,883 | 1,131 | 687 | 236 | |||||||||||
Net income | $ | 58,677 | $ | 41,468 | $ | 41,570 | $ | 37,509 | $ | 36,070 | ||||||
Core operating earnings | $ | 40,177 | $ | 39,687 | $ | 40,439 | $ | 39,088 | $ | 35,834 | ||||||
Page 4
- press release 1st qtr 2004 -
SKY FINANCIAL GROUP, INC.
FIVE QUARTER PERFORMANCE RATIOS AND SHARE DATA
(Unaudited)
PERFORMANCE RATIOS
| 2004 | 2003 | ||||||||||||||
ACTUAL | 1st qtr | 4th qtr | 3rd qtr | 2nd qtr | 1st qtr | ||||||||||
Return on average equity | 22.83 | % | 16.82 | % | 18.00 | % | 16.78 | % | 17.37 | % | |||||
Return on average assets | 1.83 | 1.28 | 1.31 | 1.24 | 1.33 | ||||||||||
| 2004 | 2003 | ||||||||||||||
CONTINUING OPERATIONS | 1st qtr | 4th qtr | 3rd qtr | 2nd qtr | 1st qtr | ||||||||||
Return on average equity | 15.54 | % | 16.05 | % | 17.51 | % | 16.47 | % | 17.25 | % | |||||
Return on average assets | 1.34 | 1.31 | 1.35 | 1.29 | 1.40 | ||||||||||
Net interest rate spread (FTE) | 3.43 | 3.45 | 3.41 | 3.39 | 3.49 | ||||||||||
Net interest rate margin (FTE) | 3.69 | 3.70 | 3.66 | 3.66 | 3.80 | ||||||||||
Efficiency ratio | 53.75 | 52.59 | 53.95 | 55.28 | 52.39 | ||||||||||
| 2004 | 2003 | ||||||||||||||
CORE OPERATING * | 1st qtr | 4th qtr | 3rd qtr | 2nd qtr | 1st qtr | ||||||||||
Return on average equity | 15.63 | % | 16.09 | % | 17.51 | % | 17.49 | % | 17.25 | % | |||||
Return on average assets | 1.34 | 1.32 | 1.35 | 1.36 | 1.40 | ||||||||||
Efficiency ratio | 53.51 | 51.84 | 53.95 | 52.88 | 52.39 | ||||||||||
| 2004 | 2003 | ||||||||||||||
CASH OPERATING* | 1st qtr | 4th qtr | 3rd qtr | 2nd qtr | 1st qtr | ||||||||||
Return on average tangible equity | 20.63 | % | 21.19 | % | 23.05 | % | 22.41 | % | 21.19 | % | |||||
Return on average assets | 1.32 | 1.29 | 1.33 | 1.34 | 1.37 | ||||||||||
Page 5
- press release 1st qtr 2004 -
SKY FINANCIAL GROUP, INC.
FIVE QUARTER SHARE DATA
(Unaudited)
| 2004 | 2003 | ||||||||||||||
| 1st qtr | 4th qtr | 3rd qtr | 2nd qtr | 1st qtr | |||||||||||
Earnings per share from continuing operations | |||||||||||||||
Basic earnings per share | $ | 0.43 | $ | 0.43 | $ | 0.45 | $ | 0.41 | $ | 0.41 | |||||
Diluted earnings per share | 0.42 | 0.43 | 0.44 | 0.41 | 0.41 | ||||||||||
Earnings per share from discontinued operations | |||||||||||||||
Basic earnings per share | 0.20 | 0.02 | 0.01 | 0.01 | 0.00 | ||||||||||
Diluted earnings per share | 0.20 | 0.02 | 0.01 | 0.01 | 0.00 | ||||||||||
Earnings per share | |||||||||||||||
Basic earnings per share | $ | 0.63 | $ | 0.45 | $ | 0.46 | $ | 0.42 | $ | 0.41 | |||||
Diluted earnings per share | 0.62 | 0.45 | 0.46 | 0.42 | 0.41 | ||||||||||
Core operating earnings per share* | |||||||||||||||
Basic | 0.43 | 0.43 | 0.45 | 0.44 | 0.41 | ||||||||||
Diluted | 0.43 | 0.43 | 0.44 | 0.44 | 0.41 | ||||||||||
Cash dividend declared per common share | 0.21 | 0.21 | 0.20 | 0.20 | 0.20 | ||||||||||
Book value per share | 11.46 | 10.80 | 10.31 | 10.16 | 9.67 | ||||||||||
Book value calculation shares outstanding | 93,063,000 | 92,459,000 | 90,383,000 | 90,070,000 | 87,082,000 | ||||||||||
Page 6
- press release 1st qtr 2004 -
SKY FINANCIAL GROUP, INC.
FIVE QUARTER AVERAGE BALANCE SHEETS (Unaudited)
(Dollars in thousands)
| 2004 | 2003 | |||||||||||||||||||
| 1st qtr | 4th qtr | 3rd qtr | 2nd qtr | 1st qtr | ||||||||||||||||
Cash and due from banks | $ | 217,857 | $ | 202,720 | $ | 202,099 | $ | 180,846 | $ | 179,641 | ||||||||||
Interest-earning deposits with banks | 33,800 | 39,238 | 35,814 | 30,839 | 28,096 | |||||||||||||||
Federal funds sold | 5,165 | 8,497 | 1,337 | 1,084 | 1,831 | |||||||||||||||
Loans held for sale | 31,720 | 28,980 | 81,493 | 90,716 | 85,533 | |||||||||||||||
Securities available for sale | 2,449,138 | 2,508,711 | 2,499,421 | 2,497,796 | 2,254,581 | |||||||||||||||
Total loans | 8,660,549 | 8,546,675 | 8,406,189 | 8,099,147 | 7,346,404 | |||||||||||||||
Allowance for credit losses | (124,751 | ) | (123,629 | ) | (123,766 | ) | (117,832 | ) | (107,242 | ) | ||||||||||
Net loans | 8,535,798 | 8,423,046 | 8,282,423 | 7,981,315 | 7,239,162 | |||||||||||||||
Premises and equipment | 153,155 | 153,866 | 152,393 | 147,703 | 131,007 | |||||||||||||||
Assets of discontinued operations | 864,779 | 837,579 | 760,808 | 694,027 | 655,229 | |||||||||||||||
Other assets | 598,585 | 605,606 | 610,294 | 555,691 | 452,794 | |||||||||||||||
Total Assets | $ | 12,889,997 | $ | 12,808,243 | $ | 12,626,082 | $ | 12,180,017 | $ | 11,027,874 | ||||||||||
Total interest-earning assets | $ | 11,180,372 | $ | 11,132,101 | $ | 11,024,254 | $ | 10,719,582 | $ | 9,716,445 | ||||||||||
Non-interest-bearing deposits | $ | 1,228,468 | $ | 1,214,825 | $ | 1,180,213 | $ | 1,081,124 | $ | 951,920 | ||||||||||
Interest-bearing deposits | 7,448,158 | 7,427,640 | 7,541,423 | 7,367,482 | 6,825,313 | |||||||||||||||
Total deposits | 8,676,626 | 8,642,465 | 8,721,636 | 8,448,606 | 7,777,233 | |||||||||||||||
Repos and federal funds purchased | 988,628 | 917,789 | 824,163 | 882,223 | 772,361 | |||||||||||||||
Debt and FHLB advances | 1,247,874 | 1,359,818 | 1,318,043 | 1,184,516 | 896,864 | |||||||||||||||
Liabilities of discontinued operations | 811,805 | 787,410 | 716,249 | 654,790 | 615,457 | |||||||||||||||
Other liabilities | 131,183 | 122,437 | 129,682 | 113,368 | 123,659 | |||||||||||||||
Shareholders’ equity | 1,033,881 | 978,324 | 916,309 | 896,514 | 842,300 | |||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 12,889,997 | $ | 12,808,243 | $ | 12,626,082 | $ | 12,180,017 | $ | 11,027,874 | ||||||||||
Page 7
- press release 1st qtr 2004 -
SKY FINANCIAL GROUP, INC.
FIVE QUARTER ACTUAL BALANCE SHEETS (Unaudited)
(Dollars in thousands)
| 2004 | 2003 | |||||||||||||||||||
| 1st qtr | 4th qtr | 3rd qtr | 2nd qtr | 1st qtr | ||||||||||||||||
Cash and due from banks | $ | 200,783 | $ | 251,364 | $ | 184,782 | $ | 279,328 | $ | 231,815 | ||||||||||
Interest-earning deposits with banks | 29,051 | 22,808 | 39,564 | 38,207 | 27,951 | |||||||||||||||
Federal funds sold | — | — | — | — | — | |||||||||||||||
Loans held for sale | 57,650 | 28,062 | 46,332 | 120,271 | 123,571 | |||||||||||||||
Securities available for sale | 2,613,816 | 2,511,369 | 2,573,009 | 2,551,690 | 2,464,445 | |||||||||||||||
Total loans | 8,555,651 | 8,643,862 | 8,406,735 | 8,457,338 | 7,383,760 | |||||||||||||||
Allowance for credit losses | (125,043 | ) | (124,943 | ) | (122,617 | ) | (123,378 | ) | (106,923 | ) | ||||||||||
Net loans | 8,430,608 | 8,518,919 | 8,284,118 | 8,333,960 | 7,276,837 | |||||||||||||||
Premises and equipment | 152,621 | 153,285 | 152,219 | 153,060 | 130,022 | |||||||||||||||
Assets of discontinued operations | — | 874,765 | 802,702 | 718,429 | 686,691 | |||||||||||||||
Other assets | 608,862 | 585,623 | 579,896 | 574,392 | 446,369 | |||||||||||||||
Total Assets | $ | 12,093,391 | $ | 12,946,195 | $ | 12,662,622 | $ | 12,769,337 | $ | 11,387,701 | ||||||||||
Total interest-earning assets | $ | 11,256,168 | $ | 11,206,101 | $ | 11,065,640 | $ | 11,167,506 | $ | 9,999,727 | ||||||||||
Non-interest-bearing deposits | $ | 1,229,981 | $ | 1,233,272 | $ | 1,158,281 | $ | 1,208,013 | $ | 1,005,221 | ||||||||||
Interest-bearing deposits | 7,541,365 | 7,282,261 | 7,453,863 | 7,500,580 | 6,966,328 | |||||||||||||||
Total deposits | 8,771,346 | 8,515,533 | 8,612,144 | 8,708,593 | 7,971,549 | |||||||||||||||
Repos and federal funds purchased | 931,792 | 994,896 | 780,608 | 949,401 | 975,832 | |||||||||||||||
Debt and FHLB advances | 1,156,419 | 1,475,781 | 1,447,478 | 1,342,210 | 824,831 | |||||||||||||||
Liabilities of discontinued operations | — | 822,498 | 755,365 | 678,743 | 646,651 | |||||||||||||||
Other liabilities | 167,677 | 138,911 | 135,083 | 175,380 | 126,536 | |||||||||||||||
Shareholders’ equity | 1,066,157 | 998,576 | 931,944 | 915,010 | 842,302 | |||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 12,093,391 | $ | 12,946,195 | $ | 12,662,622 | $ | 12,769,337 | $ | 11,387,701 | ||||||||||
Page 8
- press release 1st qtr 2004 -
SKY FINANCIAL GROUP, INC.
FIVE QUARTER ASSET QUALITY (Unaudited)
(Dollars in thousands)
The following asset quality information does not include Sky Financial Solutions.
ASSET QUALITY DATA: | ||||||||||||||||||||
| 2004 | 2003 | |||||||||||||||||||
| 1st qtr | 4th qtr | 3rd qtr | 2nd qtr | 1st qtr | ||||||||||||||||
Non-accrual loans | $ | 90,132 | $ | 81,979 | $ | 87,188 | $ | 86,793 | $ | 62,257 | ||||||||||
Restructured loans | 585 | 599 | 1,245 | 1,266 | 1,291 | |||||||||||||||
Total non-performing loans | 90,717 | 82,578 | 88,433 | 88,059 | 63,548 | |||||||||||||||
Other real estate owned | 10,775 | 10,441 | 7,583 | 6,840 | 4,679 | |||||||||||||||
Total non-performing assets | $ | 101,492 | $ | 93,019 | $ | 96,016 | $ | 94,899 | $ | 68,227 | ||||||||||
Loans 90 days or more past due & still accruing | $ | 26,039 | $ | 13,841 | $ | 11,906 | $ | 11,809 | $ | 12,995 | ||||||||||
Net charge-offs | 6,565 | 9,330 | 9,086 | 7,075 | 7,252 | |||||||||||||||
Allowance for credit losses | 125,043 | 124,943 | 122,617 | 123,378 | 106,923 | |||||||||||||||
ASSET QUALITY RATIOS: | ||||||||||||||||||||
| 2004 | 2003 | |||||||||||||||||||
| 1st qtr | 4th qtr | 3rd qtr | 2nd qtr | 1st qtr | ||||||||||||||||
Non-accrual loans to total loans | 1.05 | % | 0.95 | % | 1.04 | % | 1.03 | % | 0.84 | % | ||||||||||
Non-performing loans to total loans | 1.06 | 0.96 | 1.05 | 1.04 | 0.86 | |||||||||||||||
Non-performing assets to total loans plus other real estate owned | 1.18 | 1.07 | 1.14 | 1.12 | 0.92 | |||||||||||||||
Loans 90 days or more past due and still accruing to total loans | 0.30 | 0.16 | 0.14 | 0.14 | 0.18 | |||||||||||||||
Net charge-offs to average loans | 0.30 | 0.43 | 0.43 | 0.35 | 0.40 | |||||||||||||||
Allowance for credit losses to non-performing loans | 137.84 | 151.30 | 138.66 | 140.11 | 168.26 | |||||||||||||||
Allowance for credit losses to non-performing assets | 123.20 | 134.32 | 127.70 | 130.01 | 156.72 | |||||||||||||||
Allowance for credit losses to total loans | 1.46 | 1.45 | 1.46 | 1.46 | 1.45 | |||||||||||||||
Page 9
- press release 1st qtr 2004 -
SKY FINANCIAL GROUP, INC.
YEAR TO DATE AVERAGE BALANCE SHEETS (Unaudited)
(Dollars in thousands)
| December 31, | Percent Change | ||||||||||
| 2003 | 2002 | ||||||||||
Cash and due from banks | $ | 191,421 | $ | 193,886 | (1.3 | )% | |||||
Interest-earning deposits with banks | 33,534 | 10,832 | 209.6 | ||||||||
Federal funds sold | 3,200 | 11,180 | (71.4 | ) | |||||||
Loans held for sale | 71,552 | 55,430 | 29.1 | ||||||||
Securities available for sale | 2,440,986 | 2,197,798 | 11.1 | ||||||||
Total loans | 8,103,732 | 6,560,602 | 23.5 | ||||||||
Allowance for credit losses | (118,177 | ) | (97,528 | ) | 21.2 | ||||||
Net loans | 7,985,555 | 6,463,073 | 23.6 | ||||||||
Premises and equipment | 146,322 | 117,859 | 24.1 | ||||||||
Assets of discontinued operations | 737,476 | 494,144 | 49.2 | ||||||||
Other assets | 556,663 | 370,499 | 50.2 | ||||||||
Total Assets | $ | 12,166,710 | $ | 9,914,701 | 22.7 | ||||||
Total interest-earning assets | $ | 10,653,006 | $ | 8,835,842 | 20.6 | ||||||
Non-interest-bearing deposits | $ | 1,107,941 | $ | 861,805 | 28.6 | ||||||
Interest-bearing deposits | 7,292,802 | 6,152,391 | 18.5 | ||||||||
Total deposits | 8,400,743 | 7,014,196 | 19.8 | ||||||||
Repos and federal funds purchased | 849,464 | 732,230 | 16.0 | ||||||||
Debt and FHLB advances | 1,191,430 | 873,805 | 36.3 | ||||||||
Liabilities of discontinued operations | 694,010 | 466,207 | 48.9 | ||||||||
Other liabilities | 122,307 | 105,021 | 16.5 | ||||||||
Shareholders’ equity | 908,756 | 723,242 | 25.7 | ||||||||
Total Liabilities and Shareholders’ Equity | $ | 12,166,710 | $ | 9,914,701 | 22.7 | ||||||
Page 10
- press release 1st qtr 2004 -
SKY FINANCIAL GROUP, INC.
ACTUAL BALANCE SHEETS (Unaudited)
(Dollars in thousands)
| December 31, | Percent Change | ||||||||||
| 2003 | 2002 | ||||||||||
Cash and due from banks | $ | 251,364 | $ | 239,967 | 4.7 | % | |||||
Interest-earning deposits with banks | 22,808 | 26,346 | (13.4 | ) | |||||||
Federal funds sold | — | 11,100 | (100.0 | ) | |||||||
Loans held for sale | 28,062 | 77,457 | (63.8 | ) | |||||||
Securities available for sale | 2,511,369 | 2,247,181 | 11.8 | ||||||||
Total loans | 8,643,862 | 7,347,988 | 17.6 | ||||||||
Allowance for credit losses | (124,943 | ) | (106,675 | ) | 17.1 | ||||||
Net loans | 8,518,919 | 7,241,313 | 17.6 | ||||||||
Premises and equipment | 153,285 | 132,070 | 16.1 | ||||||||
Assets of discontinued operations | 874,765 | 640,129 | 36.7 | ||||||||
Other assets | 585,623 | 434,557 | 34.8 | ||||||||
Total Assets | $ | 12,946,195 | $ | 11,050,120 | 17.2 | ||||||
Total interest-earning assets | $ | 11,206,101 | $ | 9,710,072 | 15.4 | ||||||
Non-interest-bearing deposits | $ | 1,233,272 | $ | 999,069 | 23.4 | ||||||
Interest-bearing deposits | 7,282,261 | 6,618,403 | 10.0 | ||||||||
Total deposits | 8,515,533 | 7,617,472 | 11.8 | ||||||||
Repos and federal funds purchased | 994,896 | 795,125 | 25.1 | ||||||||
Debt and FHLB advances | 1,475,781 | 1,065,254 | 38.5 | ||||||||
Liabilities of discontinued operations | 822,498 | 598,675 | 37.4 | ||||||||
Other liabilities | 138,911 | 141,161 | (1.6 | ) | |||||||
Shareholders’ equity | 998,576 | 832,433 | 20.0 | ||||||||
Total Liabilities and Shareholders’ Equity | $ | 12,946,195 | $ | 11,050,120 | 17.2 | ||||||
Page 11
press release 4th qtr 2003
SKY FINANCIAL GROUP, INC.
STATEMENTS OF INCOME (Unaudited)
Year Ended December 31, | Percent Change | |||||||||
(Dollars in thousands, except per share data) | 2003 | 2002 | ||||||||
Interest income | $ | 594,063 | $ | 576,397 | 3.1 | % | ||||
Interest expense | 202,820 | 235,162 | (13.8 | ) | ||||||
Net interest income | 391,243 | 341,235 | 14.7 | |||||||
Provision for credit losses | 34,125 | 37,659 | (9.4 | ) | ||||||
Net interest income after provision for credit losses | 357,118 | 303,576 | 17.6 | |||||||
Non-interest income | ||||||||||
Trust services income | 14,348 | 13,479 | 6.4 | |||||||
Service charges and fees on deposit accounts | 38,207 | 34,499 | 10.7 | |||||||
Mortgage banking income | 47,832 | 28,626 | 67.1 | |||||||
Brokerage and insurance commissions | 42,686 | 36,848 | 15.8 | |||||||
Net securities gains | 871 | 2,479 | 64.9 | |||||||
Other income | 34,954 | 32,053 | 9.1 | |||||||
Total non-interest income | 178,898 | 147,984 | 20.9 | |||||||
Non-interest expenses | ||||||||||
Salaries and employee benefits | 164,060 | 139,220 | 17.8 | |||||||
Occupancy and equipment expense | 50,025 | 38,550 | 29.8 | |||||||
Merger, integration and restructuring expense | 4,577 | 10,437 | (56.1 | ) | ||||||
Other operating expenses | 88,524 | 65,493 | 100.0 | |||||||
Total non-interest expense | 307,186 | 253,700 | 21.1 | |||||||
Income from continuing operations before income taxes | 228,830 | 197,860 | 15.7 | |||||||
Income taxes from continuing operations | 76,150 | 65,712 | 15.9 | |||||||
Income from continuing operations | 152,680 | 132,148 | 15.5 | |||||||
Income from discontinued operations, net of tax | 3,937 | (4,341 | ) | (190.7 | ) | |||||
Net income | $ | 156,617 | $ | 127,807 | 22.5 | |||||
Page 12
press release 4th qtr 2003
SKY FINANCIAL GROUP, INC.
YEAR TO DATE SHARE DATA:
Year Ended December 31, | Percent Change | |||||||||
(Dollars in thousands, except per share data) | 2003 | 2002 | ||||||||
Earnings per share from continuing operations | ||||||||||
Basic earnings per share | $ | 1.70 | $ | 1.58 | 7.6 | |||||
Diluted earnings per share | 1.69 | 1.57 | 7.5 | |||||||
Earnings per share from discontinued operations | ||||||||||
Basic earnings per share | 0.05 | (0.05 | ) | (203.7 | ) | |||||
Diluted earnings per share | 0.04 | (0.05 | ) | (184.4 | ) | |||||
Earnings per share | ||||||||||
Basic earnings per share | 1.75 | 1.53 | 14.1 | |||||||
Diluted earnings per share | 1.73 | 1.52 | 14.0 | |||||||
Core operating earnings per share* | ||||||||||
Basic earnings per share | 1.73 | 1.67 | 3.9 | |||||||
Diluted earnings per share | 1.72 | 1.65 | 3.8 | |||||||
Cash dividend declared per common share | 0.81 | 0.77 | — | |||||||
Average shares outstanding | ||||||||||
Basic | 89,630,000 | 83,439,000 | — | |||||||
Diluted | 90,404,000 | 84,096,000 | — | |||||||
Book value per share | 10.80 | 9.56 | ||||||||
Book value calculation shares outstanding | 92,459,000 | 87,277,000 | ||||||||
Page 13
- press release 1st qtr 2004 -
SKY FINANCIAL GROUP, INC.
YEAR TO DATE PERFORMANCE RATIOS
(Unaudited)
PERFORMANCE RATIOS: | ||||||||
| December 31, | ||||||||
ACTUAL | 2003 | 2002 | ||||||
Return on average equity | 17.23 | % | 17.67 | % | ||||
Return on average assets | 1.29 | 1.29 | ||||||
| December 31, | ||||||||
CONTINUING OPERATIONS | 2003 | 2002 | ||||||
Return on average equity | 16.80 | % | 18.27 | % | ||||
Return on average assets | 1.34 | 1.40 | ||||||
Net interest rate spread (FTE) | 3.43 | 3.53 | ||||||
Net interest rate margin (FTE) | 3.70 | 3.90 | ||||||
Efficiency ratio | 53.59 | 51.52 | ||||||
The efficiency ratio was 49.8% for the year end December 31, 2001. | ||||||||
| December 31, | ||||||||
CORE OPERATING * | 2003 | 2002 | ||||||
Core operating earnings | $ | 155,048 | $ | 138,932 | ||||
Return on average equity | 17.06 | % | 19.21 | % | ||||
Return on average assets | 1.27 | 1.40 | ||||||
Efficiency ratio | 52.79 | 49.41 | ||||||
| December 31, | ||||||||
CASH OPERATING* | 2003 | 2002 | ||||||
Return on average tangible equity | 21.89 | % | 22.15 | % | ||||
Return on average tangible assets | 1.42 | 1.52 | ||||||
Page 14
- press release 1st qtr 2004 -
SKY FINANCIAL GROUP, INC.
YEAR TO DATE ASSET QUALITY (Unaudited)
(Dollars in thousands)
The following asset quality information does not include Sky Financial Solutions.
ASSET QUALITY DATA:
| December 31, | Percent Change | ||||||||
| 2003 | 2002 | ||||||||
Non-accrual loans | $ | 81,978 | $ | 66,034 | 24.1 | % | |||
Restructured loans | 599 | 3,203 | (81.3 | ) | |||||
Total non-performing loans | 82,577 | 69,237 | 19.3 | ||||||
Other real estate owned | 10,441 | 4,178 | 149.9 | ||||||
Total non-performing assets | $ | 93,018 | $ | 73,415 | 26.7 | ||||
Loans 90 days or more past due & still accruing | $ | 13,841 | $ | 11,496 | 20.4 | ||||
Net charge-offs | 32,744 | 30,691 | 6.7 | ||||||
Allowance for credit losses | 124,943 | 106,675 | 17.1 | ||||||
ASSET QUALITY RATIOS:
| December 31, | ||||||
| 2003 | 2002 | |||||
Non-accrual loans to total loans | 0.95 | % | 0.90 | % | ||
Non-performing loans to total loans | 0.96 | 0.94 | ||||
Non-performing assets to total loans plus other real estate owned | 1.07 | 1.00 | ||||
Loans 90 days or more past due and still accruing to total loans | 0.16 | 0.16 | ||||
Net charge-offs to average loans | 0.40 | 0.47 | ||||
Allowance for credit losses to non-performing loans | 151.30 | 154.07 | ||||
Allowance for credit losses to non-performing assets | 134.32 | 145.30 | ||||
Allowance for credit losses to total loans | 1.45 | 1.45 | ||||
Page 15
- press release 1st qtr 2004 -
SKY FINANCIAL GROUP, INC.
*NON-GAAP DISCLOSURE RECONCILIATIONS
(Dollars in thousands)
Core operating earnings are net income adjusted to exclude discontinued operations, merger integration and restructuring expenses and the results of certain significant transactions or events not representative of ongoing operations (“non-operating items”). Cash operating earnings are core operating earnings adjusted to exclude the after-tax effect of amortizing core deposits and other intangibles. Management believes that both core operating earnings and cash operating earnings assist the investor in understanding the impact of non-operating items on reported results.
Core operating earnings
The following reconciles GAAP income from continuing operations to core operating earnings for the twelve months ended December 31, 2003 and 2002 as well as for each of the five quarters presented in these tables:
| December 31, | ||||||||
| 2003 | 2002 | |||||||
Income from continuing operations | $ | 152,680 | $ | 132,148 | ||||
Merger, integration and Restructuring expense | 4,577 | 10,437 | ||||||
Non-operating gains | (934 | ) | ||||||
Tax effect | (1,275 | ) | (3,653 | ) | ||||
After-tax non-operating items | 2,368 | 6,784 | ||||||
Core operating earnings | $ | 155,048 | $ | 138,932 | ||||
| 2004 | 2003 | |||||||||||||||||
| 1st qtr | 4th qtr | 3rd qtr | 2nd qtr | 1st qtr | ||||||||||||||
Income from continuing operations | $ | 39,952 | $ | 39,585 | $ | 40,439 | $ | 36,822 | $ | 35,834 | ||||||||
Merger, integration and Restructuring expense | 346 | 1,091 | — | 3,486 | — | |||||||||||||
Non-operating gains | — | (934 | ) | |||||||||||||||
Tax effect | (121 | ) | (55 | ) | — | (1,220 | ) | — | ||||||||||
After-tax non-operating items | 225 | 102 | — | 2,266 | — | |||||||||||||
Core operating earnings | $ | 40,177 | $ | 39,687 | $ | 40,439 | $ | 39,088 | $ | 35,834 | ||||||||
Merger, integration and restructuring expense in 2004 reflect charges associated with the sale of Sky Financial Solutions, Inc.
Merger, integration and restructuring expense in 2003 reflect the impact of charges for the acquisitions of Metropolitan Financial Corp. and GLB Bancorp, Inc. in the second and fourth quarters, respectively. The non- operating gain recognized in the fourth quarter of 2004 relates to a gain on the sale of a building.
Core operating earnings is used as the numerator to calculate core operating return on average assets, core operating return on average equity and core operating earnings per share. Additionally, non-operating items are deducted from non-interest expense in the numerator and non-interest income in the denominator of the core operating efficiency ratio disclosed in the tables. The comparable information on a GAAP basis is also provided in the tables.
Page 16
- press release 1st qtr 2004 -
Cash operating earnings
The following reconciles operating earnings to cash operating earnings for the twelve months ended December 31, 2003 and 2002 as well as for each of the five quarters presented in these tables:
| December 31, | ||||||||
| 2003 | 2002 | |||||||
Core operating earnings | $ | 155,048 | $ | 138,932 | ||||
Amortization of core deposits and other intangible assets | 6,895 | 4,032 | ||||||
Tax effect | (2,413 | ) | (1,411 | ) | ||||
After-tax non-operating items | 4,482 | 2,621 | ||||||
Cash operating earnings | $ | 159,530 | $ | 141,553 | ||||
| 2004 | 2003 | |||||||||||||||||||
| 1st qtr | 4th qtr | 3rd qtr | 2nd qtr | 1st qtr | ||||||||||||||||
Core operating earnings | $ | 40,177 | $ | 39,687 | $ | 40,439 | $ | 39,088 | $ | 35,834 | ||||||||||
Amortization of core deposits and other intangible assets | 1,907 | 1,903 | 1,869 | 1,705 | 1,418 | |||||||||||||||
Tax effect | (667 | ) | (666 | ) | (654 | ) | (597 | ) | (496 | ) | ||||||||||
After-tax non-operating items | 1,240 | 1,237 | 1,215 | 1,108 | 922 | |||||||||||||||
Cash operating earnings | $ | 41,416 | $ | 40,924 | $ | 41,654 | $ | 40,196 | $ | 36,756 | ||||||||||
Cash operating earnings is used as the numerator to calculate the cash operating return on average tangible equity and the cash operating return on average tangible assets. The denominator of each ratio is adjusted to deduct the average balance of intangible assets during the period. The comparable GAAP information is also included in the tables.
Page 17
- press release 1st qtr 2004 -
The following table reconciles average GAAP equity to average tangible equity for the years ended December 31, 2003 and 2002, as well as for each of the period ends presented in the tables.
| December 31, | ||||||||
| 2003 | 2002 | |||||||
Average GAAP equity | $ | 908,756 | $ | 723,350 | ||||
Goodwill | 147,370 | 64,404 | ||||||
Core deposits and other intangibles | 50,375 | 30,673 | ||||||
Deferred taxes | (17,631 | ) | (10,736 | ) | ||||
| 180,114 | 84,341 | |||||||
Average tangible equity | $ | 728,642 | $ | 639,009 | ||||
| 2004 | 2003 | |||||||||||||||||||
| 1st qtr | 4th qtr | 3rd qtr | 2nd qtr | 1st qtr | ||||||||||||||||
Average GAAP equity | $ | 1,033,881 | $ | 978,324 | $ | 916,309 | $ | 896,514 | $ | 842,300 | ||||||||||
Goodwill | 193,561 | 174,660 | 162,568 | 142,630 | 108,731 | |||||||||||||||
Core deposits and other intangibles | 50,474 | 54,176 | 53,626 | 50,191 | 43,353 | |||||||||||||||
Deferred taxes | (17,666 | ) | (18,962 | ) | (18,769 | ) | (17,567 | ) | (15,174 | ) | ||||||||||
| 226,370 | 209,875 | 197,425 | 175,254 | 136,911 | ||||||||||||||||
Average tangible equity | $ | 807,511 | $ | 768,449 | $ | 718,884 | $ | 721,260 | $ | 705,389 | ||||||||||
The following table reconciles average GAAP assets to average tangible assets for the years ended December 31, 2003 and 2002, as well as for each of the period ends presented in the tables.
| December 31, | ||||||||
| 2003 | 2002 | |||||||
Average GAAP assets | $ | 12,166,710 | $ | 9,914,701 | ||||
Goodwill | 147,370 | 64,404 | ||||||
Core deposits and other intangibles | 50,375 | 30,673 | ||||||
Deferred taxes | (17,631 | ) | (10,736 | ) | ||||
| 180,114 | 84,341 | |||||||
Average tangible assets | $ | 11,986,596 | $ | 9,830,360 | ||||
| 2004 | 2003 | |||||||||||||||||||
| 1st qtr | 4th qtr | 3rd qtr | 2nd qtr | 1st qtr | ||||||||||||||||
Average GAAP assets | $ | 12,889,997 | $ | 12,808,243 | $ | 12,626,082 | $ | 12,180,017 | $ | 11,027,874 | ||||||||||
Goodwill | 193,561 | 174,660 | 162,568 | 142,630 | 108,731 | |||||||||||||||
Core deposits and other intangibles | 50,474 | 54,176 | 53,626 | 50,191 | 43,353 | |||||||||||||||
Deferred taxes | (17,666 | ) | (18,962 | ) | (18,769 | ) | (17,567 | ) | (15,174 | ) | ||||||||||
| 226,370 | 209,875 | 197,425 | 175,254 | 136,911 | ||||||||||||||||
Average tangible assets | $ | 12,663,627 | $ | 12,598,368 | $ | 12,428,657 | $ | 12,004,763 | $ | 10,890,963 | ||||||||||
— end —
Page 18
